To Rely on the ICFR in the Financial Statement Audit

question 55

Multiple Choice

To rely on the ICFR in the financial statement audit, the auditor must:

• A) test the ITCG at both interim and year-end.
• B) assess the control risk below maximum.
• C) Both a and b.
• D) Neither a nor b.

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Definitions:

UCC

Uniform Commercial Code, a set of laws that govern commercial transactions in the United States.

Merchant Status

A legal designation for individuals or entities engaged in the sale of goods, which subjects them to specific regulatory statutes and obligations under the Uniform Commercial Code.

Neuroticism

A personality trait associated with a higher tendency towards anxiety, depression, self-doubt, and other negative feelings.

Big Five

A personality model outlining five broad trait dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.